Recurring deposit (RD) or debt mutual fund: Where to invest if you are saving for holiday

investors know whether they have invested in the right funds and if their fund portfolio is on track. The Portfolio Doctor assesses the health of the fund portfolio, examines the schemes and their suitability with regard to the goals and, if required, recommends corrective measures. The advice given is based on the performance of the funds, the risk profile of the investor as well as his financial goals.Anjali Sharma wants to build a corpus of Rs.7 crore in five years. Here’s what the doctor has advised:PORTFOLIO CHECK-UP

Has been investing regularly in equity funds for 7-8 years. Funds are good and stable, but has too many similar funds. Cut number of funds to streamline portfolio. Portfolio also leans towards small- and midcap funds. Too much lying in fixed deposits. Switch to bond funds to avoid yearly tax.

Note from the doctor

Goal is too ambitious given the existing and monthly investments. Will need to invest nearly Rs.7 lakh per month to reach target. Reduce target by 50% to Rs.3.5 crore and defer goal by 5 years. Use liquid fund as emergency corpus. Review investments and rebalance at least once a year.

Invest in RD or debt MF for holiday Utkarsh Agarwal is investing in equity schemes to fund his holiday plans. Here’s what the doctor has advised:PORTFOLIO CHECK-UP

Started investing in equity funds recently. Holds good funds with small- and midcap bias. Portfolio has done well due to upswing in markets but the performance may not sustain. Using equity funds for yearly holiday not recommended. Hold these for long term. Instead, invest in debt fund or a recurring deposit to save for holiday.

WRITE TO US FOR HELPIf you want your portfolio examined, write to etwealth@timesgroup.com with “Portfolio Doctor” as the

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